MEXICO CITY. The Mexican peso depreciated on Monday as riskier currencies lost ground against the dollar as investors returned to worry about the advance of COVID-19, especially the highly contagious Delta variant, which would hinder economic recovery.
The local currency was trading at 19.9798 per dollar, down 0.53 percent from 19.8750 in the . reference price on Friday. During operations in the Asian market, the peso depreciated to 20.0250 units.
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The government of the populous Mexican capital will accelerate the vaccination of its inhabitants against COVID-19 starting this week, after verifying a significant increase in infections and hospitalizations in recent days.
The situation in the capital is part of a re-outbreak of the virus in Mexico, the fourth in the world with the most deaths from COVID-19. On Saturday, 12,631 new cases were registered, the fifth consecutive day with more than 10 thousand.
“Investors are studying the evolution of the market in view of the risks of a contraction in demand derived from the expansion of the Delta variant, which returns the tone of caution to the market,” Monex Europe said in a report.
Meanwhile, oil prices plunged more than 2 percent after the OPEC group of producing countries overcame a recent dispute and agreed to increase production at a meeting on Sunday.